The benchmark 10-year Treasury note, which started the year with a yield below 1.9%, is now up to 2.6%. That's good news for investors with idle cash to put to work. Jack Hough joins MoneyBeat.

This transcript has been automatically generated and may not be 100% accurate.

... on healed risen sharply the last two months there's ... been a lot of people by surprise ... have you are still in the Bond Market Jack now always with some good ideas along that enthusiasm for bonds and debt ... that fell by more heat and with rates rising so rapidly that only was arm started the year to one point nine percent right on the ten year Treasury when will we hit two point six percent lower at two a half percent out of ... the sun's Lee a relatively better deal the problem is ... the long-term historical average is over six percent to ten years or so we're not really high it would just hire ... and a new Upromise where you typically do with that information is use the shortwave for rates to rise more ... the short end of the yield curve has moved in all it for in practical terms if you want to get a mortgage now year to pay more but if you wanted to buy a one year bank CD you're knocking again and so I you some ideas on how to invest in this environment ... a few ideas long they're they're couple of new types of farms out their hedge bond funds is one ... for Market Vectors Treasury had high yield bond no one from ProShares called High Yield Interest Rate Hedge fund ... all of these hold junk bond see a higher yields on them ... and they have short positions in Treasuries ... the purpose areas you want to dissipate in in the yields from the junk bonds ... but you want insulate yourself from what might happen if rates rise so you get some protection there ... aam did did the junk bond yield about five percent there are some higher fees ... you know the downside with these funds is that this is a recipe from bonds father jump on so they're they're inherently riskier right ... it's a recipe for disaster if we were have another financial crisis more people would do visitors Nestle history ... they dumped on bonds ... may flock to Treasurys and the iShares woodworking reverses Oliver someone looking for short-term specific trade ... this Tuscan for ... Cargill and another on ... the way the Treasury unity of the Treasury is coming out soon with floating rate notes that have two year notes whether Ray will track the thirteen narrow week T bill ... animal in just eight weeks or for some who expects rates to rise you'll have some additional sources from that rhetoric um maybe late this year ... maybe early next year ... and a third choice ... I think your tips I think you are a signal of the tips here ... you know that this seven year TIPS and the yield just one positive for the first time since July two thousand eleven ... he's got clobbered because tips to portly when inflation is low and when rates are rising that's a perfect storm ... it's also a rarity we rarely have those two things together so we see ... things go back to normal ... if the economy contends continues demand inflation heats up that should do better ... and if things fall apart of me going and you know God forbid deeply tips give you some downside protection and tube is it's a safe haven investment of ... your positive yield on some